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MFG

Magellan Financial GroupASX:MFG Stock Report

Last Price

AU$19.23

Market Cap

AU$3.6b

7D

-2.1%

1Y

-59.7%

Updated

21 Jan, 2022

Data

Company Financials +
MFG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends4/6

MFG Stock Overview

Magellan Financial Group Limited is a publicly owned investment manager.

Magellan Financial Group Competitors

Insignia Financial

ASX:IFL

AU$2.2b

Perpetual

ASX:PPT

AU$1.9b

Pendal Group

ASX:PDL

AU$1.8b

Platinum Investment Management

ASX:PTM

AU$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Magellan Financial Group
Historical stock prices
Current Share PriceAU$19.23
52 Week HighAU$56.18
52 Week LowAU$19.03
Beta0.97
1 Month Change-8.25%
3 Month Change-47.00%
1 Year Change-59.71%
3 Year Change-31.59%
5 Year Change-18.90%
Change since IPO1,731.43%

Recent News & Updates

Oct 14
It's Unlikely That Magellan Financial Group Limited's (ASX:MFG) CEO Will See A Huge Pay Rise This Year

It's Unlikely That Magellan Financial Group Limited's (ASX:MFG) CEO Will See A Huge Pay Rise This Year

CEO Brett Cairns has done a decent job of delivering relatively good performance at Magellan Financial Group Limited...

Shareholder Returns

MFGAU Capital MarketsAU Market
7D-2.1%-2.1%-0.5%
1Y-59.7%20.2%8.4%

Return vs Industry: MFG underperformed the Australian Capital Markets industry which returned 20.2% over the past year.

Return vs Market: MFG underperformed the Australian Market which returned 8.4% over the past year.

Price Volatility

Is MFG's price volatile compared to industry and market?
MFG volatility
MFG Average Weekly Movement11.2%
Capital Markets Industry Average Movement4.5%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.5%
10% least volatile stocks in AU Market3.6%

Stable Share Price: MFG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: MFG's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004139Kirsten Mortonhttps://www.magellangroup.com.au

Magellan Financial Group Limited is a publicly owned investment manager. It invests in global equities and global listed infrastructure markets across the globe. Magellan Financial Group Limited founded in 2004 and is based in Sydney, Australia.

Magellan Financial Group Fundamentals Summary

How do Magellan Financial Group's earnings and revenue compare to its market cap?
MFG fundamental statistics
Market CapAU$3.57b
Earnings (TTM)AU$265.16m
Revenue (TTM)AU$719.86m

13.5x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MFG income statement (TTM)
RevenueAU$719.86m
Cost of RevenueAU$70.51m
Gross ProfitAU$649.35m
ExpensesAU$384.19m
EarningsAU$265.16m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)1.43
Gross Margin90.20%
Net Profit Margin36.83%
Debt/Equity Ratio0%

How did MFG perform over the long term?

See historical performance and comparison

Dividends

11.0%

Current Dividend Yield

138%

Payout Ratio

Valuation

Is Magellan Financial Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MFG (A$19.23) is trading below our estimate of fair value (A$52.91)

Significantly Below Fair Value: MFG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MFG is good value based on its PE Ratio (13.5x) compared to the Australian Capital Markets industry average (16.2x).

PE vs Market: MFG is good value based on its PE Ratio (13.5x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: MFG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: MFG is overvalued based on its PB Ratio (3.6x) compared to the AU Capital Markets industry average (1.4x).


Future Growth

How is Magellan Financial Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFG's forecast earnings growth (8.1% per year) is above the savings rate (1.9%).

Earnings vs Market: MFG's earnings (8.1% per year) are forecast to grow slower than the Australian market (11.1% per year).

High Growth Earnings: MFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: MFG's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: MFG's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFG's Return on Equity is forecast to be high in 3 years time (31.6%)


Past Performance

How has Magellan Financial Group performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFG has high quality earnings.

Growing Profit Margin: MFG's current net profit margins (36.8%) are lower than last year (57%).


Past Earnings Growth Analysis

Earnings Trend: MFG's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: MFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MFG had negative earnings growth (-33.1%) over the past year, making it difficult to compare to the Capital Markets industry average (33.8%).


Return on Equity

High ROE: MFG's Return on Equity (26.8%) is considered high.


Financial Health

How is Magellan Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: MFG's short term assets (A$333.8M) exceed its short term liabilities (A$209.9M).

Long Term Liabilities: MFG's short term assets (A$333.8M) exceed its long term liabilities (A$16.8M).


Debt to Equity History and Analysis

Debt Level: MFG is debt free.

Reducing Debt: MFG has not had any debt for past 5 years.

Debt Coverage: MFG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MFG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Magellan Financial Group current dividend yield, its reliability and sustainability?

10.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFG's dividend (10.98%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: MFG's dividend (10.98%) is in the top 25% of dividend payers in the Australian market (5.48%)


Stability and Growth of Payments

Stable Dividend: MFG's dividend payments have been volatile in the past 10 years.

Growing Dividend: MFG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (138.1%), MFG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFG's dividends in 3 years are forecast to be covered by earnings (86.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Kirsten Morton

0.083

Tenure

AU$863,977

Compensation

Ms. Kirsten Elizabeth Morton serves as Chief Financial Officer at Magellan Asset Management Limited and serves as its Interim Chief Executive Officer from December 06, 2021. She serves as Chief Financial O...


CEO Compensation Analysis

Compensation vs Market: Kirsten's total compensation ($USD627.71K) is below average for companies of similar size in the Australian market ($USD1.72M).

Compensation vs Earnings: Kirsten's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MFG's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: MFG's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magellan Financial Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Magellan Financial Group Limited
  • Ticker: MFG
  • Exchange: ASX
  • Founded: 2004
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: AU$3.569b
  • Shares outstanding: 185.58m
  • Website: https://www.magellangroup.com.au

Number of Employees


Location

  • Magellan Financial Group Limited
  • Level 36,
  • 25 Martin Place,
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 15:44
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.